What are auditing conducted by SEBI on companies?

SEBI (Securities and Exchange Board of India) is the regulator for the securities market in India. As part of its mandate to protect the interests of investors and maintain the integrity of the securities market, SEBI conducts various types of audits on companies. These audits include:

Compliance audits: SEBI conducts compliance audits to ensure that companies comply with the various regulations and guidelines issued by SEBI, such as the listing agreement, insider trading regulations, and corporate governance norms.


Accounting and financial audits: SEBI conducts audits to ensure that the financial statements and other financial information of companies are accurate and reliable. This includes conducting audits of the books of accounts, assessing internal controls, and verifying the accuracy of the financial statements.


Surveillance audits: SEBI conducts surveillance audits to monitor the compliance of listed companies with the listing agreement and other regulations. This includes reviewing trading activity, price movement, and other relevant data to ensure that there is no manipulation or irregularity in the market.


Forensic Audits: SEBI conducts forensic audits to examine any fraud or misconduct that may have occurred within a company. This includes investigating financial statement fraud, insider trading, and other securities law violations


Inspection Audits: SEBI conducts Inspection audits to ensure the compliance of registrars and transfer agents.

It is important to note that the compliance and financial audit is mandatory for all the companies listed on stock exchange and if any violation found, SEBI can take penal actions as well.